Start Lean

GOING LEAN

LAB75 02.01.15

BUSINESS

WHAT IS BUSINESS?

The fine art of separating people from their money.

WHEN IS THIS POSSIBLE?

Add enjoyment

remove pain

HOW IS IT POSSIBLE?

Product Service

BUSINESS MATRIX

Product Service

Pai

n Jo

y

PRICING CHALLENGE

Is it worth paying?

>

PLAN

HOW TO PLAN?

Repetition.

HOW TO PLAN?

Experience.

THE CHALLENGE

How to plan the unkown?

WHAT IS A PLAN?

An ansumption about the future.

HOW TO SEE IT

An expedition with many ways.

SETTING

BUSINESS MODELS

VS

startup cooperate

WHAT IS A STARTUP?

„A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty and has nothing to do with size of company, sector of the economy or industry.“

BUSINESS MODELS

VS

startup cooperation

10% KNOWN

90% UNKNOWN

10% UNKNOWN

90% KNOWN

=

startup experiments

Most experiments fail.

Scale

Optimize

Economics

Promise

Product / Market Fit

„The real reason most startups fail

is that the fail to build something

that people

actually want

to use and

pay for.“ DANGER ZONE

FAIL OFTEN. FAIL FAST.

LEARN SOMETHING.

Entrepreneurship = Management

EXECUTION

WATERFALL

problem known solution known

REQUIREMENTS

DESIGN

IMPLEMENTATION

VERIFICATION

MAINTENANCE

AGILE

problem known solution unknown

PRODUCT OWNER ITERATIONS

LEAN

problem unknown solution unknown

ITERATIONS

CUSTOMER DEV. Data, Feedback, Insights

Hypotheses, Experiments, Insights

LEAN STARTUP

„Lean Startup is a systematic process for iterating from Plan A to a plan that works before running out of resources.“

•  WE ELIMINATE UNCERTAINTY •  WE WORK SMARTER, NOT HARDER •  WE CREATE ORDER

WORKFLOW

EXPERIENCE

IDEAS

DATA

DESIGN

MEASURE

LEARN

LEAN START

THE PRODUCT IS NOT THE PRODUCT.

TO DO LIST

SCOPE I) Problem/Solution Fit

„Do I have a problem worth solving“

II) Early Traction

„Have I built something people want?“

III) Product/Market Fit

„How do I scale?“

PROBLEM/SOLUTION FIT 1) Document your plan A

business model canvas

2) Formulate an implementation

product > strategy > vision

3) Invite early adopters

MVP (Minimum viable product = the smallest solution that delivers customer value)

MINIMUM VIABLE PRODUCT

MVP = the smallest solution that delivers customer value

MVP FINAL PRODUCT

EARLY TRACTION 4) Measure progress

AARRR!

5) Deliver value before growth

Unique value proposition

6) Qualitative learning

A/B testing, interviews, ...

AARRR!

ACQUISITION

ACTIVATION

RETENTION

REVENUE

REFERRAL

How do users find you?

Do users have a great first experience?

Do users come back?

How do you make money?

Du users tell others?

UNIQUE VALUE PROPOSITION

•  For (target customers) •  Who are dissatisfied with (the current alternative)

•  Our product is a (new product)

•  That provides (key problem-solving capability) •  Unlike (the product alternative).

PRODUCT/MARKET FIT 7) Identify growth engine

Paid, organic & viral sources

8) Measure everything as a cohort e.g. average revenue per customer over time

9) Build feedback loops

e.g. user support

10) Insights are usually hidden within failed experiments.

BACKUP

RESOURCES •  blog.strategyzer.com

•  practicetrumpstheory.com

•  leananalyticsbook.com

ABOUT US Founded in 1999, LAB75 Design GmbH is running three design and innovation hubs in Frankfurt, Berlin and Zürich by today. The workforce around Marco Bahn and Wolfgang Weicht consists of an international multidisciplinary team covering all aspects of an integrated industrial design process.

A variety of long term partnerships with collaborating design and software engineering studios as well as mechanical engineers and production facilities for real world products complete our external network and reflect our focus on rapidly evolving goods and environments.

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